Year 2020 marked a watershed for Euroeat as for the first time we consolidated our financials from Finland (Euroeat Oy) and China (Euroeat E-Business Ltd) as group financials. We did this to improve visibility to the actual business performance of Euroeat & to improve transparency in our financial reporting.
Before diving into the numbers, pls keep in mind the numbers between 2019 & 2020 are not fully comparable, as 2019 numbers were not consolidated, they were audited separately. But we can see the trends from these anyway.
The theme of the year 2020 was turnaround and that is also what we achieved. Our audited revenues grew by 80% YoY, and the operating profit (loss) was cut down by about 50% (from -23% of revenues to -11%). The reduction of net loss was even more dramatic: from -34% to -13%! Comparison is done to Ltd 2019 audited figures.
The growth was largely due to our focus on single family of branded products, ie Moomins. This has enabled us to build on brand related efficiencies both on sourcing and in sales & promotion. This led to the following main achievements:
– Revenue grew by 80% YoY
– Average conversion grew from around 1% to 2.7% during 2020
– Our Tmall online shop was rated among the top 10% online shops in the platform in our main sales category, toys
– We got six more product categories approved on top of toys in Tmall platform
– Scalable & automated warehouse and delivery partnership capable delivering 100k orders per day.
Additionally, company internal transformation project was kicked off, which resulted in the nomination of the new CEO & partially new Board of Directors.
Further details and full Euroeat consolidated numbers can be found in the attached documents, Euroeat audited P&L and balance sheet.
Although the year 2020 ended in a loss, we saw substantial improvements across all functions of Euroeat, both in China and in Finland. Therefore we are confident we can continue our work during 2021 along our agreed strategic theme, aiming for financial break even during the year, meaning in practice becoming EBITDA positive during Q42021. And continuing profitable growth from thereon.
We humbly thank all our employees, investors, shareholders, partners, vendors and customers for their continued support and trust for Euroeat and look forward continuing building our future with all of you!
Attachments (In Finnish only):